*Walgreens will close nearly 500 locations across the United States and the United Kingdom.
In the U.S., 150 stores will close compared to 300 in the U.K., CNN reports.
The pharmacy chain said the closures are expected to take place by the end of the comany’s next fiscal year in August 2024.
“We are optimizing the model through our micro fulfillment centers, tech-enabled centralization of in-store activities and telepharmacy solutions,” Walgreens Boots Alliance CFO James Keho told CNN.
According to Keho, Walgreens will save $3.3 billion by 2023 and “at least” $800 million by 2024.
Meanwhile, Walgreens CEO Rosalind Gates Brewer pointed to declining profits as the reason for the cost-cutting measures.
“We had called out COVID as a wildcard heading into the quarter and have unfortunately seen less patient willingness to vaccinate,” Brewer explained.
In the United States, Walgreens has nearly 9,000 stores, and in Europe and Latin America, it has 4,000 stores.
“We have seen changing market trends that have consumers prioritizing value in response to a more uncertain and challenging economic environment,” Brewer said during a recent earnings call, according to The Hill. Walgreens, she said, is “closely watching emerging challenges to consumer spending and sentiment, such as the end of fiscal stimulus and the resumption of student loan payments.”
At the end of May, there were 1600 Walgreens stores with reduced operating hours. That number is currently down to 1100, USA Today reports.
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